PRELIM QUIZ

3. Gross National Product is calculated using a common set of international prices for all
goods and services.

 False

4. Life expectancy is the average number of years newborn children would live if
subjected to the mortality risks prevailing for their cohort at the time of their birth

 True

5. It reflects what citizens can do with income they receive, whereas that is not true of
value added in goods and services produced in a country that go to someone outside it,
and income earned abroad still benefits some of the nation's citizens.

 GNI

6. One major disadvantage of the HDI is that it does reveal that a country can do much
better than might be expected at a low level of income and that substantial income
gains can still accomplish relatively little in human development.

 False

7. Low-income countries often have ethnic, linguistic, and other forms of social
divisions, sometimes known as

 Fractionalization

8. Imperfect markets and incomplete information are far more rare in developing
countries, with the result that domestic markets, notably but not only financial markets,
have worked less efficiently.

 False

9. The emigration of highly educated and skilled professionals and technicians from the
developing countries.
  Braindrain

10. Free trade Trade in which goods can be imported and exported with barriers in the
forms of tariffs, quotas, or other restriction.

 False

11. Imperfect market A market in which the theoretical assumptions of monopolistic

competition are violated by the existence of, for example, a small number of buyers and
sellers, barriers to entry, and incomplete information.

 False

12. Infrastructure Facilities that enable economic activity and markets, such as
transportation, communication and distribution networks, utilities, water, sewer, and
energy supply.

 True

13. Crude birth rate The number of children born alive each year per 10,000 population.

 False

14. Absolute poverty The situation of being unable or only barely able to meet the
subsistence essentials of food, clothing, shelter, and basic health care

 True

15. World Bank An organization known as an "international financial institution" that

provides development funds to developing countries in the form of non-interest-bearing
loans, grants, and technical assistance.

 False

16. Capital stock The total amount of physical goods existing at a particular time that
have been produced for use in the production of other goods and services.

 True

17. Holistic measure of Quality of Life

  HDI

18. defined as the number of units of a foreign country's currency required to purchase
the identical quantity of goods and services in the local developing country market as $1
would buy in the United States.

 Purchasing Power Parity

19. Prices of nontraded services are much lower in developing countries because
wages are so much

 Lower

20. In recent decades, most population growth has been centered in the developing
world.

 True

21. The greater the ethnic, linguistic, and religious diversity of a country, the more likely
it is that there will be internal strife and political stability

 False

22. A situation in which a society has at its disposal a variety of alternatives from which
to satisfy its wants and individuals enjoy real choices according to their preferences

 Freedom

23. The basic goods and services, such as food, clothing, and shelter, that are
necessary to sustain an average human being at the bare minimum level of living

 Sustenance

24. A second universal component of the good life is known as

 Self-esteem

25. The core values of development

 sustenance, self-esteem, and freedom

 MIDTERM QUIZ

1. A stationary population is when population growth is

 Zero
2. The Essay on the Principle of Population was written by
 Thomas Robert Malthus
3. Malthus's theory was that population
 increased geometrically, outstripping food supply, which grew
arithmetically
4. The total fertility rate (TFR) is
 the number of children born to the average woman during her reproductive
years
5. The emigration of highly-skilled people from the developing countries is known as
 human capital deterioration.
6. The second stage of the theory of demographic transition is characterized by
 High birth-rate and falling death-rate
7. The number of deaths of children under one year of age per 1000 live births is the:
 infant mortality rate
8. The Gini coefficient is a technique frequently used to show:
 income inequality
9. What is the most typically used measure of a country's level of development?
 Income
10. Social outcomes commonly used to measure a country's level of human
development include:
 Infant mortality and adult literacy rate
11. What does the Gini coefficient measure?
 Inequality
12. Which of the following would typically be considered "human capital"?
 Health and education
13. How would social scientists characterize China's approach to securing economic
growth over the last several decades?
 Export-led growth
14. On which of the following economic measures does the United States lead the
world?
 Highest overall GDP
15. Which of the following world regions includes many cases often cited by proponents
of state-led development?
 East Asia
16. Which of the following regions includes many cases that development scholars
consider to have been problematic over the last several decades?
 Africa
17. Which of the following terms overlaps closely with the concepts of social
connections and trust?
 Social Capital
18. Jared Diamond's argument about the causes of development focuses on structural
factors beyond a country's control, most notably:
 Geography
19. A theory to explain how poverty and high population growth become reinforcing.
 population-poverty cycle
20. The theory that family formation has costs and benefits that determine the size of
families formed.
 microeconomic theory of fertility
21. The scientific study of population trends is known as the fertility rate.
 False
22. Life expectancy is the potential life span of the average member of any given
population.
 True
23. Population growth rates are highest in western nations and lower in developing
nations.
 False
 MIDTERM EXAM

1. Investments embodied in human persons, including skills, abilities, ideals, health, and locations,
often resulting from expenditures on education, on-the-job training programs, and medical care.
 Human capital investment
 Human investment
 Human capital Productive
 Human capital
2. Welfare benefits provided conditionally on family behavior such as children's regular school
attendance and health clinic visitation
 Conditional program
 Conditional transfer programs
 Conditional transfer
 Conditional cash transfer programs
1. The benefits that accrue directly to an individual economic unit.
 Private benefits
 Economic benefits
 Public benefits
 Public issue
3. Cost borne by both the individual and society from private education decisions, including
government education subsidies.
 Cost of education
 Social costs
 Social costs of education
 Private costs of education
4. Benefits of the schooling of individuals, including those that accrue to others or even to the
entire society, such as the benefits of a more literate workforce and citizenry.
 Social education
 Social benefits
 Benefits of education
 Social benefits of education
5. The emigration of highly educated and skilled professionals and technicians from the developing
countries to the developed world.
 Brain drain
 Emigration
 Immigration
 Migration
6. Thirteen treatable diseases, most of them parasitic, that are prevalent in developing countries
but receive much less attention than tuberculosis, malaria, and AIDS.
 Pandemic diseases
  Neglected tropical diseases
 Covid 19
 Tropical diseases
7. Malaria directly causes over 1million deaths each year, most of them among impoverished
Filipino children.
 True
 False
8. The AIDS epidemic threatens to halt or even reverse years of hard-won human and economic
development progress in numerous countries.
 True
 False
9. Developed countries face a mush more crippling disease burden than developing countries,
especially regarding infectious diseases.
 True
 False
10. Creating less productive labor force and endowing it with increased knowledge and skills;
 True
 False
11. Studies have also demonstrated that contrary to what might have been assumed, the
educational systems of many developing nations sometimes act to decrease rather than to
increase income inequalities.
 True
 False
12. The private costs of primary education (especially in view of the opportunity cost of a child's
labor to poor families) are higher for poor students than for more affluent students, and the
expected benefits of (lower-quality) primary education are lower for poor students
 True
 False
13. Education also plays a powerful role in the international migration of high-level educated
workers-the so-called brain drain-from rich to poor countries.
 True
 False
14. Inferior education and health care access for girls shows the interlinked nature of economic
incentives and the cultural setting.
 True
 False
15. The difference between the birth rate and the death rate of a given population.
 Natural life
 Natural decrease
 Natural phenomena
 Natural increase
16. The number of children born alive each year per 1,000 population (often shortened to birth
rate).
 all are correct
 crude birth rate
 natural birth rate
 birth rate
17. The distribution of these asset holdings and skill endowments ultimately determines the
distribution of personal expenses
 True
 False
18. Taxation decreases government revenues that increase the share of disposable income of the
very rich-revenues that can, with good policies, be invested in human capital and rural and other
lagging infrastructure needs, thereby promoting inclusive growth
 True
 False
19. Women make up a substantial minority of the world1s poor
 True
 False
20. Negative income is characterized by all but the following
 Welfare states that tax citizens according to their income
 Welfare states that respect free market policies yet regulate taxation by providing tax
shelters for corporations and other profit-oriented institutions
 Welfare states that redistribute the wealth of high income and landed citizens among
the people equitably
 Welfare states subsidizing the expenses of the poorer of the poor
21. Corrado Gini's coefficient measures inequality by measuring the cumulative proportion of the
population and ---------------
 The cumulative proportion of gross national product
 The cumulative proportion of gross domestic product
 The cumulative proportion of per capita income
 The cumulative proportion of realistic elasticity
22. Therefore, a Gini coefficient looks at that proportion of the population's by measuring perfect
equality of income against the curve.
 income/Lorenz
 production/Lorenz
 production/ Palma
 expenditure/ Palma
23. a situation where people's needs are not met. These needs can be for food, water and shelter,
but they can also be for self-esteem, companionship and happiness.
 Relative poverty
 Inequality
  Poverty
 quality of life
24. Level of income within a specific country below which people are considered to be poor. For
example, in the USA, the level of $12.00 per day is used.
 all are correct
 less developed world
 national poverty line
 Inequality
25. Which is not a cause of poverty?
 Poor infrastructure
 Poor health facilities
 High growth of population
 Higher education
26. If people do not have enough resources to survive this is
 Absolute poverty
 Relative poverty
27. For the most part, people living in poverty do not work.
 True
 False
28. People who have jobs and generally work full time but cannot make enough money to pay their
basic expenses, such as food and shelter
 ethnic minority
 inequality
 working poor
 relative poverty
29. Children that live below the poverty line will typically not have developmental delays or learning
disabilities.
 True
 False
30. The poverty rate for single-mother households is 31%, meaning almost 1in 3 single mothers live
in poverty.
 True
 False
31. The poverty rate for single-mother households is 31%, meaning almost 1in 3 single mothers live
in poverty.
 True
 False
32. 6.8 million children, or about 1in 11of all children in the U.S., live at 50 percent below the
federal poverty line.
 True
 False
33. Which of the following is a major source of Human Capital Formation in a Country?
 Expenditure on Subsidy
 Expenditure on education
 Expenditure on Education
 Expenditure on fertilizers
34. Which is the reason for poor human capital formation in developing country
 Brain Drain
 all are correct
 Insufficient job training
 Rising Population
35. refers to the stock of skills and expertise of a nation at a given point of time.
 Human Capital
 Resource Development
 Health Capital
 Education Capital
36. From the following which in not a source of human capital:
 On-the job training
 no correct answer
 migration
 Investment in education
37. A person become human resource when he is
 Able to work
 Willing to work
 In the age group of 15-60yrs
 All are correct
38. Human capital is Tangible
 True
 False
39. Which of the following is the major source of human capital formation in a country?
 Expenditure on education
 expenditure on health
 expenditure on infrastructure
 expenditure on defense
40. Human capital is a process
 socio-economic
 political
 Social
 economic
41. is the reason for rural-urban migration in developing countries
 unemployment
 socialization
  technological
 poverty
42. Human capital considers education and health as a means to increase
 Productivity
 GNP
 GDP
 income
43. Physical capital is inseparable from the owner
 True
 False
44. Human capital treats humans as ends in themselves
 True
 False
45. It refers to the movement of people from one place to another. It can be temporary or
permanent.
 no correct answer
 migration
 emigration
 immigration
46. It is the process of leaving your home country.
 Migration
 Emigration
 no correct answer
 immigration
47. The process of entering a new country.
 Immigration
 Migration
 no correct answer
 emigration
48. A stationary population is when population growth is
 Decreasing
 100%
 Increasing
 Zero
49. The Essay on the Principle of Population was written by
 Julian Simon
 Abraham Lincoln
 Thomas Robert Malthus
 The World Bank.
50. Malthus's theory was that population
 increased stagnantly with food supply and economic development
  increased proportionally to economic growth
 increased disproportionately, surpassing agricultural production.
 increased geometrically, outstripping food supply, which grew arithmetically
51. The total fertility rate (TFR) is
 the total number of children born in a country in a given year divided by labor force
 the number of births in a country divided by total population in a given year.
 the number of women age 15-45 in a country divided by total population
 the number of children born to the average woman during her reproductive years
52. The emigration of highly-skilled people from the developing countries is known as
 labor degradation.
 human capital deterioration
 the brain drain
 productivity
53. The second stage of the theory of demographic transition is characterized by
 High birth-rate and falling death-rate
 Falling birth-rate and falling death-rate
 Low birth-rate and low death-rate
 High birth-rate and high death rate
54. The number of deaths of children under one year of age per 1000 live births is the:
 neo-natal mortality rate
 child mortality rate
 infant mortality rate
 toddler mortality rate
55. People who have jobs and generally work full time but cannot make enough money to pay their
basic expenses, such as food and shelter
 working poor
 relative poverty
 ethnic minority
 inequality
56. Children that live below the poverty line will typically not have developmental delays or learning
disabilities.
 True
 False
57. The poverty rate for single-mother households is 31%, meaning almost 1in 3 single mothers live
in poverty.
 True
 False
58. 6.8 million children, or about 1in 11of all children in the U.S., live at 50 percent below the
federal poverty line.
 True
 False
59. Which of the following is the major source of human capital formation in a country?
 Expenditure on education
 expenditure on health
 expenditure on infrastructure
 expenditure on defense
60. Which is the reason for poor human capital formation in developing country
 Brain drain
 All are correct
 Insufficient job training
 Expenditure on Subsidy
61. refers to the stock of skills and expertise of a nation at a given point of time.
 Human Capital
 Resource Development
 Health Capital
 Education Capital
62. From the following which in not a source of human capital:
 On-the job training
 no correct answer
 migration
 Investment in education
63. A person become human resource when he is
 Able to work
 Willing to work
 In the age group of 15-60yrs
 All are correct
64. Human capital is Tangible
 True
 False
65. Which of the following regions includes many cases that development scholars consider to have
been problematic over the last several decades?
 Africa
 India
 Latin America
 East Asia
66. Which of the following terms overlaps closely with the concepts of social connections and trust?
 Physical Capital
 Human Capital
 Economic capital
 Social Capital
67. Jared Diamond's argument about the causes of development focuses on structural factors
beyond a country's control, most notably:
 Extractive institutions
 Geography
 Culture
 Political leadership
 QUIZ #5

1. Agrarian system is a pattern of land distribution, ownership, and management and

also the social and institutional structure of the rural economy

 False

2. Landlord is a proprietorship of a freehold interest in land with rights to lease out to

tenants in return for some form of compensation for the use of the land.

 False

3. Permanent farmer is one who farms on land held by a landlord and therefore lacks
ownerships rights and has to pay for the use of that land, for example, by giving a share
of output to the owner.

 False

4. Minifundio is a landholding found particularly in the Latin American agrarian system

considered too small to provide adequate employment for a single family

 True

5. Subsistence farming a kind of farming in which crop production, stock rearing, and
other activities are conducted for business purposes.

 False

6. Cash crops are produced entirely for the market.

 True

7. Specialized farming is the final and most advanced stage of the evolution of
agricultural production in which farm output is produced wholly for the economy.

 False
8. Land reform is a deliberate attempt to reorganize and transform agrarian systems
with the intention of fostering a more equal distribution of agricultural incomes and
facilitating urban development

 False

9. Environmental accounting is the incorporation of environmental benefits and costs

into the quantitative analysis of business activities.

 False

10. Environmental capital The portion of a country's overall capital assets that directly
relate to the environment-for example, forests, soil quality, and ground water.

 True

11. The variety of life forms within an ecosystem.

 Biodiversity

12. Gases that trap heat within the earth's atmosphere and can thus contribute to global
warming.

 Greenhouse gases

13. The full cost of an economic decision, whether private or public, to society as a
whole.

 Social Cost

14. The situation in which people can secure benefits that someone else pays for

 Free-rider problem

15. An entity that provides benefits to all individuals simultaneously and whose
enjoyment by one person in no way diminishes that of another.

 Public Goods
16. The process whereby external environmental or other costs are borne by the
producers or consumers who generate them, usually through the imposition of pollution
or consumption taxes.

 Internalization

17. Any benefit or cost borne by an individual economic unit that is a direct
consequence of another's behavior

 Externality

18. The acknowledged right to use and benefit from a tangible (e.g., land) or intangible
(e.g., intellectual) entity that may include owning, using, deriving income from, selling,
and disposing.

 Property Rights

19. Excess utility over price derived by consumers because of a negative-sloping

demand curve.

 Consumer Surplus

20. Excess of what a producer of a good receives and the minimum amount the
producer would be willing to accept because of a positive-sloping marginal cost curve.

 Producer Surplus

21. The clearing of forested land either for agricultural purposes or for logging and for
use as firewood.

 Deforestation

22. The transformation of a region into dry, barren land with little or no capacity to
sustain life without an artificial source of water.

 Desertification

23. A pattern of development that permits future generations to live at least as well as
the current generation, generally requiring at least a minimum environmental protection
  Sustainable Development

24. Increasing average air and ocean temperatures.

 Global Warming

25. A very large landholding found particularly in the Latin American agrarian system,
capable of providing employment for more than people, owned by a small number of
landlords, and comprising a disproportionate share of total agricultural land.

 Latifundio

26. Deforestation in developing countries contributes over 40% of harmful greenhouse

gases,

 False

27. A significant amount of climate change is now essentially evitable. Thus adaptation
to climate change in developing countries is critical for protecting livelihoods and
continuing to make development gains.

 False

28. Environmental degradation can also detract from the pace of economic
development by imposing high costs on developing countries through health related
expenses and the reduced productivity of resources

 True

29. Agricultural and urban development that benefits the poor can succeed only through
a joint effort by the government and all farmers, not just the large farmers

 False

30. Farm structures and land tenure patterns must be adapted to the dual objectives of
increasing food production and promoting a wider distribution of the benefits of agrarian
progress, allowing further progress against poverty.

 True
31. The basic concern of people in rural areas

 Survival

32. Country that shown the largest growth of per capita food production in last two
decades

 China

33. Country that has shown significant decline in agricultural productivity in last two
decades

 Africa

34. A kind of world agriculture of developed countries where substantial productive

capacity and high output per worker permit a small number of farmers to feed entire
nations.

 Highly Efficient

35. Men work longer hours than women

 False
 QUIZ #6

1. A form of economic integration in which free trade exists among member countries but members are
free to levy tariffs on nonmember countries.

 free-trade area

 free-rider problem

 free-trade

  free-area trade

 2.  A form of economic integration in which two or more nations agree to free all internal trade while
levying a common external tariff on all nonmember countries.  

trade union

 employees union

 customs union

 union of people

3. The one who argue that without tariff protection or quantitative restrictions on trade, developing
countries gain little or nothing from an export-oriented, open-economy posture

Trade optimists Theorists

Trade pessimists Theory  

Trade optimists Theory

 Trade pessimists Theorists

4. A lowering of the official exchange rate between one country’s currency and all other currencies.

 devaluation

 revaluation

 exchange rate
 Depreciation

5. Amount of a product’s final value that is added at each stage of  production

 Value Added
Valuable Added
 Value at risk
 Value Added Tax  

6. A newly established industry, usually protected by a tariff barrier as part of a policy of import
substitution.

 new industry
 Infant industry
 establishing industry

7. A deliberate effort to replace consumer imports by promoting the emergence and expansion
of domestic industries.

 import substitution

export substitution

import transaction

Export transaction

8. Small economically developed regions in developing countries in which the remaining areas
have experienced much less progress.
Eclave economica

 Enclave economies

Eclave economics

Enclave economica

9.  In international trade, a physical limitation on the quantity of any item that can be imported
into a country.
exportation

 Quota
 Quantity or units produced

Importation

10. A payment by the government to producers or distributors in an industry for such purposes
as preventing the decline of that industry, expanding employment, increasing exports, or
reducing selected prices paid by consumers.
Aid

 Subsidy

Subside

Ayuda

11. Vent-for-surplus theory of international trade The contention that opening world markets to
__________ countries through international trade allows those countries to make better use of
formerly underutilized land and labor resources so as to produce larger primary-product outputs,
the _________ of which can be exported
developed ; products

developed ; deficit

developing ; products

 developing ; surpluses

12. Income elasticity of demand is the responsiveness of the quantity of a commodity ____________ to
changes in the consumer’s __________, measured by the proportionate change in quantity divided by
the proportionate change in income.

 demanded ; income

demanded ; wants

supplied ; taste

supplied ; income

13. Capital account is the portion of a country’s balance of _____________ that shows the volume of
private foreign _______________ and public grants and loans that flow into and out of the country

 payments ; investments

payments ; goods
 trade ; goods

trade ; investments

14. Rent seeking is an efforts by ___________ and businesses to capture the economic rent arising
from price distortions and physical controls caused by excessive ___________ intervention, such as
licenses, quotas, interest rate ceilings, and exchange control.

private ; government

individuals ; private

 individuals ; government

government ; individuals

15. Economic plan is a written document containing government ____________ decisions on how
resources shall be allocated among various uses so as to attain a targeted rate of economic
___________ or other goals over a certain period of time.

Procedures ; growth

 policy ; growth

procedures ; development

policy ; development

16. Autarky is an political economy that attempts to be completely self-reliant.

True

 False

17. Common market A form of economic irrigation in which there is free internal trade, a common tariff,
and the free movement of labor and capital among partner states.

True

 False

18. Regional trading bloc An economic coalition among countries within a geographic region, usually
characterized by liberalized internal trade and uniform restrictions on external trade, designed to
promote regional economic integration and growth.

 True
 False

19. Industrialization strategy approach is a school of thought in trade and development that emphasizes
the importance of overcoming market failures through government procedures to encourage
technology transfer and experts of progressively more advanced products.

True

 False

20. Trade liberalization is a removal of obstacles to free trade, such as quotas, nominal and interest rates
of protection, and exchange controls

True

 False

21. Wage-price spiral a vicious cycle in which higher consumer prices (e.g., as a result of devaluation)
cause workers to demand higher wages, which in turn cause producers to raise prices and worsen
inflationary forces.

 True

False

22. Exchange control A governmental policy designed to restrict the outflow of foreign currency and
prevent a worsened balance of payments position by controlling the amount of foreign exchange that
can be obtained or held by domestic citizens.

True

 False

23. Overvalued exchange rate An official exchange rate set at a level higher than its real or shadow
value.

 True

False

24. Multifiber Arrangement (MFA) A set of tariff quotas established by developed countries on imports
of cotton, wool, synthetic textiles, and clothing from individual developing countries

True
  False

25. Export substitution is a deliberate effort to replace consumer imports by promoting the emergence
and expansion of domestic industries.

True

 False

26. Centralization is one of the the trend in governance and reform

True

 False

27. Total export earnings depend upon on total volume of _______ sold; and, Price paid for ________

imports ; imports

 exports ; exports

exports; imports

imports ; exports

28. Main conclusion of the neoclassical model is that all countries gain from ________

 trade

taxes

exports

black market

29. Economic union is the full integration of two or more economies into a single economic entity.

 True

False